Par Panel tells govt to conduct study to modify EOU scheme

A Parliamentary panel has asked the commerce ministry to conduct a comprehensive study to identify the shortcomings in the Export Oriented Unit scheme and take remedial action in a time-bound manner so as to avoid shifting of EOUs to Special Economic Zones.
In its report placed in Parliament today, the Public Accounts Committee chaired by former minister Mallikarjun Kharge observed that as the EOU scheme is neither able to attract entrepreneurs nor contribute to the export growth, the Ministry of Commerce should conduct a comprehensive study so as to modify the scheme to make it more attractive.
"The Committee are also unhappy that their recommendation for high powered independent inquiry to find out elements responsible for rampant abuse of this scheme and fix responsibility of officials was completely ignored," said the panel in the report on action taken by the government on recommendations related the performance of 100 per cent EOU Scheme, related to Ministry of Commerce and the Department of Revenue, Ministry of Finance.